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Selling a home can be a complex process, with numerous legal documents and financial statements involved. One such document is the HUD-1 statement, which is typically provided to the seller at closing. In this blog post, we'll explain what a HUD-1 statement is and what it includes.
The HUD-1 statement is a standardized form created by the U.S. Department of Housing and Urban Development (HUD). It is used to itemize all of the charges and credits associated with the sale of a property. This includes fees paid to various parties involved in the sale, such as the real estate agent, title company, and lender.
The HUD-1 statement is broken down into several sections, including:
Transaction information: This section includes basic information about the property being sold, such as the address and sale price.
Borrower information: This section includes information about the seller, such as their name and address.
Settlement agent information: This section includes information about the title company or attorney handling the closing.
Summary of borrower's transaction: This section summarizes the financial details of the transaction, including the amount due from the seller and the amount due to the seller.
Itemized charges: This section lists all of the charges associated with the sale, including the sales commission, title fees, and loan fees.
Adjustments for items paid by seller: This section includes any credits that the seller is entitled to, such as prepaid taxes or homeowner's association fees.
Gross amount due from borrower: This section lists the total amount due from the seller, including all fees and charges.
Seller's transaction: This section summarizes the financial details of the transaction from the seller's perspective, including the net proceeds they will receive.
The HUD-1 statement is a critical document for both the buyer and seller, as it outlines all of the financial details of the sale. It is typically provided to the seller at closing, along with other documents such as the deed and settlement statement.
If you are selling a home, it's essential to review the HUD-1 statement carefully and ensure that all of the charges and credits are accurate. If you have any questions about the statement or the closing process in general, don't hesitate to ask your real estate agent or attorney for guidance.
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